1 / 15

Market Cap is Key

Market Cap is Key. Indicates - your Size…..…... Works as - your Currency….…. Helps in Acquisitions/Mergers…….. Attracts - Clients, Employees etc…….…. Creates an aura for your company…..…..…. Market Cap…..Market determined.

angie
Download Presentation

Market Cap is Key

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Cap is Key Indicates - your Size…..…... Works as - your Currency….…. Helps in Acquisitions/Mergers…….. Attracts - Clients, Employees etc…….…. Creates an aura for your company…..…..…..

  2. Market Cap…..Market determined • Market Cap is a function of capital market and your market price / valuation will drive your market Cap………. • So This could be well understood and explained by a market Pandit only…… • Stock prices and valuations takes in to account much more then just financials of a company. • Example – many qualitative aspects…….

  3. Market Cap….Why its so important? • Its indicative of your company’s size and weightage in corporate world. • It attracts investors, particularly large institutions or funds, who have Market Cap criteria for investment. • Lenders, suppliers, Employees and even smart consumers, consider this aspect. • It is your currency for acquisition or mergers. • Its critical in fund raising, JVs, Alliances, tie-ups and attracting Franchises/Marketing networks.

  4. What’s your role in Market Cap? • As CEO/CMD, you have a key role to - Protect and Improve the Market cap of your company. • So, Are you doing the right things to protect Market cap or improve the same? • You shouldn't do any thing to destroy your co’s market cap. • Do you know, what …? can affect your market cap. • It could be some of management’s loose statement, public behavior, your attitude towards – your Customers, employees or stake holders etc etc.

  5. What you are doing for Market Cap • Do you have Market Cap in your mind? ; while taking the strategic decisions? • Do you consider what will happen to your market cap, while taking any Policy decision, regarding – expansion or diversification? • Do you think about market cap, when you deal / interact with the external world [Corporate Communications]. • Do you really consider Market Cap, while taking any accounting policy deviations etc?

  6. Market Cap…..key focus • For a company, Market cap is very important - but it may not be a focus area for ignorant top management. • Market cap improvement should be a focus for team at top, at all times and destruction of market cap should be avoided as for as possible. • This ideology must be nurtured in minds of top executives and desired actions should be taken to keep market cap outlook always in mind. • Special sessions should be held to sensitize the top team to understand the importance of improving Market Cap and things affecting market cap.

  7. Good Governance……is key • Good governance…….be it in - Accounting practices, or strategic decision making or delivering value to customers, employees or shareholders; are key to Market cap enhancement. • Be fare to all – customers, employees, shareholders as well as to Regulatory and Revenue authorities……. • Social / Welfare spending or concerns may also be added. • Those who ignored all or some of them get the reflection of same in the Market Cap………..

  8. Good Governance……is key • Clarity of Goal or mission and vision of company [if not define – where company will go in next decades] • Complete Plan or strategy to achieve the defined goal or vision. • Absolute absorption of adopted plan /strategy by top management team to execute plan in time bound manner. • Ethical way / manner of achieving plan targets. • Efficient execution planning & ability.

  9. Sustainability…….is must Business Sustainability: • Is your business has long term sustainable growth potential? • What are competing / substituting , products or technologies, which can affect your future growth potential? • Any future developing or emerging product /technology, can affect your business materially? • If yes / possible? Then whether you have thought out some sustainable / credible diversification plan? • If so, fine tune it and start working……..

  10. Sustainability…….is must Management Sustainability: • Had you ever tried to asses the management’s - competence, capability, bandwidth or weakness? • If not get it done fast…analyze strengths / weakness. • Are you doing enough, to improve skill set of top management team? For top management team Organise -Trainings / seminars / short term skill development programs etc • Is your company managed professionally or individually? Professionalize the management…by delegation of powers with accountability. • Management’s expertise and skill will lead him to top positions in – Industry Associations / Policy Influencing Govt committees etc

  11. What we Offer • Help you to - know and understand impact of various management actions, decisions on market cap of your company, before you announce them…. • Enable you to avoid investor unfriendly decisions, which can destroy market cap of your company. • Warn you against any silly strategic decision or announcement, which can destroy image and Market Cap of your Company. • Act as top management’s confident advisor to protect and enhance the Market Cap.

  12. What we can Offer…… • Guide you about Market Cap protection and improvement. • To do right things for image build up. • To do right things for investors / Analysts interactions. • Help you find right PR / IR agencies to manage investor relations. • Suggest right Web managers or Media managers. • Enable exposure to Buss. TV and print media exposure.

  13. What we can Offer…… • We can also enable your interaction with research analysts [via IR agency], across brokerages and prepare stock research reports for wider investor understanding. • Encourage analysts and investors to understand more about your company and value it rightly. • Help you to present yourself in better way, to analysts / Investors community during interactions. • Broadly guiding you in managing Investor/ Analyst’s interactions, to improve image, valuations and finally Market cap of company.

  14. Confidentiality • We take few selected assignments, where we think management is serious in improving Market Cap, by taking right steps. • In the whole process CEO/CMD can get advice confidentially - in person, any time from our Chief Mentor/Advisor. • Most of the advice could be in personal meeting only, to maintain confidentiality of the company. • Chief Mentor will give one meeting monthly and additional meetings, on demand plus available on phone any time.

  15. Our Profile • Key mentor / Advisor – Mr. D D Sharma, has vast [20 years] experience in Capital Market, as HOD for research, sales and Advisor to HNI Investors & Corporate imvestors. • He understands – psychology & mentality of Investors / Analysts, as well as impacts of strategic decisions on market if not conveyed in right spirit. • He will enable you to avoid Market Cap destructive policies or strategic plans for companies. • Help you shore up corporate image and market cap of company over next 1-3 years. • Avoid silly mistakes and actions, which can destroy Market Cap of the company.

More Related